UK crypto platform Ziglu's Boost account service frozen, customers unable to withdraw funds

According to This Is Money, the Boost account service of UK cryptocurrency platform Ziglu has been frozen, and customers are unable to withdraw funds. This service offers up to 6% interest income on encrypted assets, but is not regulated by the Financial Conduct Authority (FCA) in the UK and is not covered by the Financial Services Compensation Scheme. FCA issued a restriction order on May 16th, prohibiting Ziglu from disposing of Boost account assets. The platform stated that it is working with regulatory agencies to develop a fund return plan and promises to provide the latest progress before June 13th. Customers have reported that their accounts have been frozen for over two weeks. Although the platform claims that the funds are risk-free, the lack of specific security measures has raised concerns. Ziglu CEO announced plans to transfer assets to regulated fiat accounts within June. The platform was acquired by Robinhood in 2022, and its regular investment account is currently unaffected.